July 13, 2020

Volume X, Number 195

July 10, 2020

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Escobar: Year One

Universal Health Services, Inc. v. U.S. ex rel. Escobar, 136 S. Ct. 1989 (2016) was a landmark case in FCA jurisprudence. In Escobar, the Supreme Court held that the implied false certification theory can be a basis for liability under the FCA in some circumstances. The Supreme Court also held that the alleged contractual, statutory, or regulatory violation need not be expressly designated a “condition of payment” to trigger implied certification liability. 

Key Facts:

  • Relator’s 17-year old stepdaughter died while in the care of a mental health facility owned by Universal.
  • Universal’s facilities were investigated by the state of Massachusetts.
  • Investigation uncovered that Universal had allegedly violated Massachusetts Medicaid regulations requiring mental health facility staff to have certain qualifications.
  • Relator sued on 17-year old’s behalf alleging that Universal violated the FCA under an implied false certification theory.

Read full article here.

Copyright © 2020, Sheppard Mullin Richter & Hampton LLP.National Law Review, Volume VII, Number 167


About this Author

Matthew Turetzky, Government Contracts, Sheppard Mullin, Law firm

Matthew Turetzky is an associate in the Government Contracts, Investigations and International Trade Practice Group in the firm's Washington, D.C. office.

Matthew's practice focuses on False Claims Act litigation in federal district and appellate courts, government contractor-specific litigation and counseling, and bid protests before the Government Accountability Office and Court of Federal Claims. Matthew also assists with other government contracts and complex civil litigation matters.